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nCino (NASDAQ:NCNO) was raised by Morgan Stanley to Equal Weight from Underweight due to the cloud banking software company’s recent bookings performance.
Morgan Stanley also increased its price target $27 from $24.
nCino shares rose up 2% during premarket trading on Friday.
Morgan Stanley still believes subscription revenue growth of +14.9% year over year expected for fiscal 2025 is too high. The company believes the Wilmington, N.C.-based company will likely provide a growth outlook for the full year of 13.1%. The buying side “now believes the company will drive in line with its below-consensus estimates.”
“However, with stable levels of technology spending by banks and credit unions, and at least single-digit growth year over year, the onus is on the company to demonstrate that the demand environment has largely bottomed out such that growth revenue is expected to accelerate in fiscal 26.” Morgan Stanley analyst James Faucette and others noted.
Analysts are mixed on nCino. Seeking Alpha analysts rate the stock as SELL, while Wall Street analysts rate it as BUY. However, Seeking Alpha’s quantitative system, which regularly beats the market, rates it HOLD.
nCino will report fourth-quarter earnings results on March 26, after the markets close. A consensus estimate is calling for earnings per share of $0.12 on revenue of $124.28 million.